In a move to support MSMEs in the UAE, Emirates Development Bank (EDB) and RAKBANK have launched a joint financing initiative worth AED 1 billion.
Announced during the Make it in the Emirates Forum at the ADNEC Centre in Abu Dhabi, the programme aims to improve access to funding for businesses in key national sectors.
The co-financing arrangement, with AED 500 million contributed by each institution, is among the region’s largest mSME-focused lending efforts.
Funds will be made available through RAKBANK to provide customised financing solutions for enterprises operating in priority areas such as manufacturing, advanced technology, food security, renewable energy, and healthcare.
The initiative also places emphasis on greenfield ventures and businesses in the Northern Emirates.
Ahmed Mohamed Al Naqbi, CEO of Emirates Development Bank, stated:
“At EDB, we’ve committed more than AED 18.8 billion in financing since 2021 to accelerate economic transformation, and we know from experience that unlocking mSME growth is one of the most effective ways to strengthen our industrial base. This AED 1 billion co-financing platform is a signal that we are serious about empowering the entrepreneurs and manufacturers who will lead our economy into its next chapter.”
Raheel Ahmed, Group CEO of RAKBANK, added:
“By joining forces with Emirates Development Bank, we’re not just unlocking capital, we’re creating real opportunities for entrepreneurs to grow, scale, and contribute to a more dynamic and sustainable national economy.”
The co-lending structure will offer businesses access to financing at competitive rates and will incorporate performance benchmarks, such as allocation for businesses in Ras Al Khaimah, Umm Al Quwain, and Fujairah, and for ventures with national ownership.
The focus will also remain on manufacturing and early-stage projects.
As part of the agreement, RAKBANK will manage risk assessment and portfolio oversight and provide monthly performance updates to EDB.
Both banks will work together on awareness campaigns and stakeholder engagement to ensure the programme’s visibility and effectiveness.
The AED 1 billion fund is expected to be deployed within 12 months.
Featured image credit: Emirates Development Bank
